Bank of Canada mulling another half-percentage-point rate hike, Macklem says

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The Bank of Canada will likely consider another half\u002Dpercentage\u002Dpoint interest rate increase in early June, Governor Tiff Macklem said.

The Canadian central bank made the rare move of raising its key policy rate by 50 basis points earlier this month, lifting it to 1.0% from 0.5%. It’s next policy decision is on June 1.

“Looking ahead to our next decisions… I expect we will be considering taking another 50-basis-points step,” Macklem said, while testifying to the finance committee in the House of Commons. Late last week, Macklem said he would not rule out an even larger increase in borrowing costs to fight inflation, now at a 31-year high.

Macklem reiterated that inflation is too high and looks set to stay higher for longer than previously thought. He repeated that the central bank will act “forcefully,” as needed, to slow the rise in prices.tap here to see other videos from our team“There’s quite a lot of volatility in inflation. So, look, it could go a little higher, it could be the peak. I do think we’re close to the peak,” he said.

 

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Nothing to 'mull' they don't have an option. JustinFlation

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